Unit no 4

Meaning of Marketing managements

Marketing management is the process of planning, organizing, implementing, and controlling

the activities involved in the exchange of goods and services between businesses or
organizations and their customers. It involves analyzing the market, identifying customer needs
and wants, and developing strategies to satisfy those needs and wants through effective
marketing activities.

Marketing management includes several activities such as market research, product

development, pricing, promotion, and distribution. These activities are designed to create
customer value, build brand awareness, and generate revenue for the business.

Market research involves gathering information about customer needs, preferences, and
behavior, as well as analyzing market trends and competitor activities. This information is used
to identify opportunities and develop marketing strategies that meet the needs of the target
market.

Product development involves creating and modifying products or services that meet the needs
and wants of the target market. This can involve developing new products, improving existing
products, or modifying product features to meet customer needs.

Pricing involves setting prices that are attractive to customers while also generating revenue for
the business. Pricing strategies can vary depending on factors such as the competitive
landscape, market demand, and product features.

Promotion involves communicating the value of the product or service to the target market
through advertising, sales promotions, personal selling, and public relations. This can help build
brand awareness, generate interest in the product or service, and drive sales.

Distribution involves getting the product or service to the customer through channels such as
retail stores, online marketplaces, or direct sales. Effective distribution strategies can help
businesses reach their target market and increase sales.

Overall, effective marketing management involves understanding the needs and wants of the
target market, developing products and services that meet those needs, and implementing
effective marketing strategies to reach and engage customers.
concepts of Marketing

Marketing is a complex and multifaceted concept that involves various activities aimed at
creating customer value and satisfying customer needs and wants. Here are some of the key
concepts of marketing:

1)Customer value: This refers to the perceived benefits that customers receive from a product
or service relative to the cost of obtaining it. Successful marketing strategies focus on creating
and delivering customer value.

2)Target market: This refers to the group of customers who have similar needs and wants that
a company seeks to serve through its marketing activities. Identifying and understanding the
target market is essential for developing effective marketing strategies.

3)Product: This refers to anything that can be offered to a market to satisfy customer needs
and wants. A product can be a physical good, a service, an idea, or a combination of these.

4)Price: This refers to the amount of money that customers are willing to pay for a product or
service. Setting the right price is important for creating customer value and generating revenue
for the business.

5)Promotion: This refers to the activities used to communicate the value of a product or service
to the target market. Promotion can include advertising, sales promotions, personal selling, and
public relations.

6)Place: This refers to the distribution channels used to make the product or service available to
the target market. Place can include physical stores, online marketplaces, or direct sales.

7)Marketing mix: This refers to the combination of product, price, promotion, and place that a
company uses to satisfy customer needs and wants. The marketing mix is a key element of
marketing strategy.

8)Marketing research: This refers to the process of gathering and analyzing information about
the market, including customer needs and wants, market trends, and competitor activities.
Marketing research is used to inform marketing strategy and decision-making.

Overall, marketing involves creating customer value, understanding the target market,
developing and promoting products or services, setting the right price, and making them
available to customers through appropriate distribution channels. Effective marketing strategies
can help businesses achieve their goals and succeed in a competitive marketplace.
Marketing Mix

The marketing mix is a set of tools and tactics that a business uses to promote its products or
services to its target market. It is also known as the 4Ps of marketing, which stands for Product,
Price, Promotion, and Place. Here is a brief explanation of each element of the marketing mix:

1)Product: This refers to the actual product or service that a business offers to its customers. It
includes the features, quality, design, and packaging of the product or service.

2)Price: This refers to the amount of money that customers are willing to pay for the product or
service. Pricing strategies can vary depending on factors such as the competition, the target
market, and the perceived value of the product.

3)Promotion: This refers to the activities that a business uses to communicate the value of its
products or services to its target market. Promotion can include advertising, public relations,
sales promotions, and personal selling.

4)Place: This refers to the distribution channels that a business uses to make its products or
services available to its target market. Place can include physical stores, online marketplaces,
and direct sales.

The marketing mix is an important tool for businesses to create a well-rounded marketing
strategy. By considering each of these four elements, a business can develop a strategy that
meets the needs and wants of its target market while also achieving its own goals and
objectives. The marketing mix can also be adapted and adjusted over time to reflect changes in
the market and in the business environment.

Administrative and cost plus pricing

Administrative pricing and cost plus pricing are two different methods that businesses use to
set prices for their products or services. Here is a brief explanation of each method:

1)Administrative pricing: This method involves setting prices based on the company's
administrative or overhead costs, such as rent, salaries, and utilities. The goal of this method is
to cover the company's fixed costs and earn a profit. Administrative pricing is often used by
service-based businesses or businesses that have high fixed costs.

2)Cost plus pricing: This method involves setting prices based on the cost of producing the
product or service, plus a markup for profit. The markup is typically a percentage of the cost,
and it varies depending on the industry and the level of competition. The goal of cost plus
pricing is to ensure that the business earns a profit on each sale while remaining competitive in
the market.
Both administrative pricing and cost plus pricing have their advantages and disadvantages.
Administrative pricing can be relatively simple and straightforward to implement, but it may not
take into account changes in the market or in the company's variable costs. Cost plus pricing
can provide a more accurate reflection of the true cost of producing a product or service, but it
may not always be competitive with other businesses in the market.

Ultimately, businesses must consider a variety of factors when setting prices, including their
costs, their competition, their target market, and their overall business strategy. The pricing
method that a business chooses should be based on these factors and should support the long-
term goals and objectives of the company.

Channels of distribution

Channels of distribution refer to the various paths that a product or service takes to reach the
end consumer. These channels can include both direct and indirect methods, and can involve
one or multiple intermediaries or middlemen. Here are some of the most common channels of
distribution:

1)Direct distribution: This involves selling the product or service directly to the end consumer,
without any intermediaries. Examples of direct distribution include selling products online,
through company-owned retail stores, or through direct mail.

2)Indirect distribution: This involves selling the product or service through intermediaries or
middlemen. Indirect distribution can include wholesalers, distributors, retailers, or agents who
sell the product or service to the end consumer. This method is often used by companies that
want to reach a larger audience or that do not have the resources to sell directly to consumers.

3)Multi-channel distribution: This involves using multiple channels of distribution to reach

different segments of the market. For example, a company may sell its products through both
direct and indirect channels, or it may use different channels for different regions or customer
segments.

4)Online distribution: This involves using the internet to sell products or services directly to
consumers, either through the company's own website or through online marketplaces like
Amazon or eBay.

5)Retail distribution: This involves selling products or services through physical retail stores,
either owned by the company or through third-party retailers. This method is commonly used by
companies that sell consumer goods or fast-moving consumer goods (FMCG).

The choice of distribution channels will depend on factors such as the nature of the product or
service, the target market, the competition, and the company's overall business strategy.
Companies must carefully evaluate their options and choose the channels that will best help
them reach their business goals while providing value to their customers.
Advertising and sales promotion

Advertising and sales promotion are two different marketing strategies that businesses use to
promote their products or services. Here is a brief explanation of each strategy:

1)Advertising: Advertising involves creating and placing paid messages in various media
channels to promote a product or service. This can include television, radio, newspapers,
magazines, billboards, and online platforms. The goal of advertising is to create awareness and
interest in the product or service among the target audience, and to encourage them to take
action, such as making a purchase

2)Sales promotion: Sales promotion involves offering incentives or special deals to encourage
customers to make a purchase. This can include discounts, coupons, free samples, contests, or
loyalty programs. The goal of sales promotion is to increase sales in the short-term, and to
encourage customers to try the product or service.

Both advertising and sales promotion have their advantages and disadvantages. Advertising can
be effective in creating brand awareness and reaching a wide audience, but it can be expensive
and may not always result in immediate sales. Sales promotion can be effective in generating
short-term sales and encouraging repeat purchases, but it may not build long-term loyalty
among customers.

Ultimately, businesses must consider a variety of factors when deciding on their marketing
strategies, including their target market, the competition, the product or service being offered,
and their overall business objectives. A combination of advertising and sales promotion may be
the most effective approach for some businesses, while others may focus more heavily on one
or the other depending on their goals and resources.